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​No, Kentucky will not blend its corporate income tax rates, because the Kentucky statute was amended to state the rate change applies to, “taxable years beginning on or after January 1, 2018.” Although the new federal law contains similar language to the Kentucky statute, a separate section of the Internal Revenue Code (IRC §15 ) requires blending for fiscal year-end taxpayers when tax rates change. The IRS followed that section when it issued guidance in Notice 2018-38.

​The special apportionment rules outlined in Kentucky regulations have not been repealed to date. The statute, as revised, retains the authority to allow special apportionment rules for specific industries. Therefore, at this time you may continue to rely upon special apportionment provisions outlined in Kentucky regulations. The Department of Revenue is in the process of updating all existing regulations in line with the recent tax legislation changes, but the process will take time. There is a possibility that these special apportionment regulations may be changed or repealed.

​No. The minimum thresholds that require remote retailers to register and collect Kentucky sales and use tax (200 or more sales into the state or $100,000 or more in gross receipts for sales into the state) do not apply to Kentucky's corporate income tax or the limited liability entity tax.

There is no minimum threshold for Kentucky's corporate income tax or the limited liability entity tax.  If a company has any amount of sales, property, or payroll in the state of Kentucky, then that company is required to file a Corporate/LLET tax return.

Doing Business in Kentucky NEXUS References:

  • For year 2018 and after:  KRS 141.010(7)
  • Before year 2018:  KRS 141.900(25) and 103 KAR 16:240(2)


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